AI startup funding in US surges 75 % in H1-2025 despite VC pullback

U.S. startup funding for artificial-intelligence companies rose by approximately 75.6 % year-on-year in the first half of 2025 to reach about US$162.8 billion, even as overall venture-capital investment declined. AI accounted for roughly 64 % of all tech funding during the period, indicating a sharp shift in investor capital toward AI infrastructure, enterprise application and domain-specific models. Market participants note that this divergence underscores confidence in AI’s growth potential but also elevates concerns about overheating among early-stage companies and the sustainability of valuations beyond near-term use-cases.